U.S. senators push for Keystone XL approval with new bill

Keystone XL advocates in the U.S. government made a fresh bid Thursday to bypass the White House with new binding legislation that, if approved, would “immediately authorize” the approval of TransCanada Corp.’s controversial pipeline project.

Democrat Louisiana Senator Mary Landrieu and North Dakota’s Republican Senator John Hoeven introduced the bill with a vote expected in “the coming days,” a statement from the senators said.

While Congress and Senate leaders have pushed pro-Keystone bills before, Thursday’s move has some key additional support with Harry Reid, the Senate Majority Leader and a staunch opponent of the pipeline, agreeing to allow a vote as part of a wider debate on an energy-efficiency bill.

“I’m open to anything that will move energy efficiency,” Mr. Reid said Wednesday as the proposed legislation was being discussed, but critics believe the senate leader’s concession is more an effort to boost Senator Landrieu and other Democrat Senators’ chances in the November mid-term elections.

“I have 56 hard yeses,” Sen. Hoeven told reporters Thursday. “Beyond that I’ve got six or seven maybes. Our challenge is going to be to get to 60 votes.”

If the pro-Keystone XL bill receives the 60 votes required to clear procedural obstacles in the Democrat-controlled Senate, it would likely sail through the Republican-controlled House of Representatives. But to avoid being vetoed by President Barack Obama it will need the support of two-thirds of the Senate, meaning 67 votes.

“There is a very slim-chance that this will get through veto-proof, although it is significant that Harry Reid is not blocking this, which suggests strong bipartisan support,” a U.S. oil industry official said, speaking on condition of anonymity.

The White House has repeatedly rejected calls to fast-track the pipeline project and insists the State Department must complete its due diligence on the proposal, which has been under review for more than five years.

Senator Landrieu, who also chairs the senate energy and natural resources committee, needs to boost her chances of winning the mid-term elections in Louisiana and has made a strong effort to distance herself from President Barack Obama on the pipeline issue.

I have 56 hard yeses…Beyond that I’ve got six or seven maybes

Last month, she and 12 other senators called on the President to set a timeline to decide the pipeline permit, but the White House responded by delaying the project, noting the State Department will wait for the outcome of a legal challenge by landowners over the pipeline route in Nebraska, which is expected to be settled by the state Supreme Court.

Lawyer Dave Domina, who is representing landowners in Nebraska, argued Thursday that under the Bridges Act and the U.S. Constitution, “the Congress of the United States can’t approve a pipeline route through the state of Nebraska.” The legislative attempt could very likely wind up in the federal court system if the bill passes, he said at a press conference.

The lawyer expects the Nebraska Supreme Court to make a final ruling late this year or early in 2015.

Meanwhile, TransCanada potentially faces another headache in South Dakota, one of four states the pipelines crosses on its way from Hardisty in Alberta to the Gulf Coast. The company’s South Dakota construction permit expires June 20 and it must restate its case before the South Dakota Public Utilities Commission.

Gary Hanson, chairman of the South Dakota commission told the Financial Post a change in route through Nebraska may trigger a review in his state.

“If Nebraska requires KXL pipeline to have a different entry point, then of course KXL would have a different exit point from South Dakota and they will have to have permission to re-site the pipeline,” Mr. Hanson said.

“Apart from that, I don’t expect KXL to go through another review process.”